Digital Services Tax Launched in Turkey

On March 1, 2020, Law No. 7194 came into force in Turkey, according to which companies providing certain types of digital services must pay tax. The law spells out the conditions for taxing organizations. In particular, this payment is compulsory for companies receiving an international income of at least 750 million euros, of which 20 million lire (2.7 million euros) are received in Turkey.

The law also stipulates a list of digital services for which tax will be charged. In particular, it is required to pay companies that provide advertising services in the digital environment. We are talking about advertising management services, statistical products, user personal data management, etc. Also, a tax on digital services will be levied on organizations that provide technical services.

The law covers all companies that distribute audio and video content in Turkey, as well as various applications. Income from online platforms for user interaction (trading platforms, business services, etc.) is also taxable. The tax rate for all organizations is 7.5%.

Law&Trust offers services for companies providing digital services in Turkey. Our lawyers will advise you on tax issues. We will explain in detail how to pay tax, how to calculate it, and how to prepare reports for regulatory authorities.